SP Tulsian, sptulsian.com shares his view on Rama Phosphates.
Tulsian told CNBC-TV18, "Rama Phosphates is a maker of SSP (Single Super Phosphate) with a capacity of about 480,000 tonne per annum with three plants located at Pune, Indore and Udaipur. Due to the higher subsidy allocation for fertilizer in this Budget, it has put more focus on the use of SSP as a nutrient. The finance minister in his speech also said that the focus will now be to encourage the use of SSP more because for the government that subsidy is easy to control and good for the crops as well. So, encouragement is likely to be given for SSP."
He further added, "The company is likely to perform much better going ahead. Even now, if we see the nine-month performance of the company, they have posted a topline of close to Rs 330 crore with PAT of close to Rs 30 crore. So with a very low equity base, the EPS for nine months turned out to be close to Rs 17.50. If you go by the same performance, it is likely to be posted in Q4. FY13
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